Performance Management and Organizational Culture by eco60708


									Performance Management and
    Organizational Culture

   Driving Change – Getting Results
          Sustainable Seattle
         September 13, 2005
                  Our Prior Culture
City of Lynnwood’s experience with                   PM
      We are a “strong mayor” form city
      We adopted a “line-item budget” until 1997 (or so)

      We had very traditional city management style
           Base line   budgeting
           No incentive for innovation

           No discussion of goals / results

           Little interaction with community on these issues

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          Why Measure Performance?
Some of the first    questions we heard:
      “We   are doing well, or we would have heard”
      “People will use this against me / us”

      “You can’t measure what I do”

      “I can’t be held accountable for results I
       can’t control”
      “If people weren’t happy, they would tell us”

      “Who is going to do this? We are already busy”

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              Encouraging Excellence
We set out to         encourage:
   Clarification of         intended results of our programs
            Goal setting   and policy making
   Scrutiny of       City effectiveness
   Accountability and           transparency
   Ownership of            information and the results it reflects

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                 Champions needed
                                apply within

Requires champions
      Willing   to upset the status quo
      Willing   to upset employees (and other directors)
      Committed to        find the right approaches
           Can’t just   point direction
           Must walk    along side those who are engaged

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Chief Executive

Department Directors

Organizational Leaders

Middle Managers

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      What is   in it for the champions?
      What can    you promise / deliver?
      Train the   trainers

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      Who    owns it?
      True   decision making
      Sharing control   / direction of program

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                  Lynnwood’ Experience
                                                        1. Stakeholder Input
                                                          Citizen Survey / Lynnwood U
     8. Adjust as                                                2. Long Term
        necessary                                                      Goals
            As Necessary
                                                                     Broad Goals /
                                                                     Strategic Plans

7. Monitor                                                        3. Short-term
   results                                                           goals
  Financial reports                                                   Areas of Emphasis
  and Annual Performance                                          Action Steps
                                                           4. Direction to staff
     6. Adopt budget                                          Macro Workshop /
            Biennial budget                                   Financial Policies
            and CFP           5. Operating / budget Impacts
                                   Proposed preliminary budget and Strategic Plans

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            Lynnwood’s Experience
Ordinance 2299 adopted March 2000
      Amended by       Ord. 2333 in January 2001
      Now LMC      2.70
           “Performance Measurement and                 Results Act”

           Definition of   terms
           Reporting requirements

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                    PMRA – LMC 2.70
      Goal setting   and strategic plan by Council
      Annual Performance Report

      Status Report   on program by Finance Director
      Department Strategic Plans

      No   outside consulting help to develop product

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          Lynnwood’s Experience
Initial effort combined with             annual budget
      Turned out   to be too confusing / complicated
      Went to   “blending” with biennial budget
Pilot projects conducted:
      Municipal Court   – Jill O’Cain
      Recreation /   Aquatics – Katie Anderson

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          Lynnwood’s Experience
                       formation of
Pilot projects resulted in
   “Performance Management Team”
2002- began participation in
   ICMA Center for Performance Measurement
Recognized with
   “ICMA CPM - Certificate of Distinction”

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           Lynnwood’s Experience
Performance Management Team
      Volunteers (mostly)


           Biennial budget to   allow time and focus on performance
           Some realignment of the relationships between the
            components of the program
           Continued participation in ICMA CPM

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                   Success (mostly)
Council feedback
      Great discussion   material when “door belling”
      Good information related to intended results

      Good information for evaluating
       program effectiveness
      Great appreciation of the intention of the process
       (“finally – the budget in context”
      Positive feedback – no big negatives

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                        Success (mostly)
      Acceptance                       enthusiasm
           “This is   the best thing that we have done in a long time!”
      Top level   reporting
           Pride in accomplishments
           Pride in focus of organization

           Support for  continuing ICMA approach
           Significant support for continued strategic planning

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                         Success (mostly)
      Many excellent examples of
          “changing the culture”
             Police   – upwardly mobile employees embracing
                > daily work efforts recast in context of results
             Parks –   strategic plans related to focus on results
                > connection of “dots” between efforts and intended results
                > daily reports reflective of changed focus

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 “Management System”
       Total performance management /            budgeting system
 “PMRA”
       Performance Measurement and             Results Act
 “Critical Few”
       Subset of    goals, objectives and measures to include in budget
 “Macro Budget Workshop”
       Annual review    of Performance Management issues

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 “Mid-Year Review”
       Annual review     of:
           Last Year’s CAFR
           This year’s status –    revenues & expense
           Next year’s   outlook
       Annual Performance Report

 “Proposed Preliminary Budget”
       Unaltered requests

 “Mayor’s Preliminary Budget”
       Mayor’s plan      to balance Proposed Preliminary Budget

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           Lynnwood’s Experience
 Tools                                                  Uses
                                Critical Few
 •Annual Performance Report                             •Citizen / Legislative

                                                            • Executive /
                                                            • Department
 •Strategic Plan                                              Management

 •Work Programs                                                  • Program Coordinators
 •Evaluations                                                    • Supervisors

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           Lynnwood’s Next Steps
 Second   citizen survey                                    January
 Fifth year in ICMA CPM                                       March
 Council                                                       April
      Broad goals   and Areas of Emphasis
 Annual Performance Report                                      May
 Department strategic plans                             May - August
 Biennial Budget                                     May – December
 Continue training staff / council                          ongoing

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            Lynnwood’s Next Steps
To make the total larger than the                    sum of the parts
      We have most the pieces
      We have begun to think in terms of
       “Performance Management”
      We have learned a great deal along the way

      We still do not:
           Base resource decisions on PM
           Leverage the elements together effectively

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